54324 Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5142–N–01] 

Notice of Funding Opportunity (NOFA) 

for the Brownfields Economic 

Development Initiative for Fiscal Year 

2007 

AGENCY: Office of the Assistant 

Secretary for Community Planning and 

Development, HUD. 

ACTION: Notice of funding availability 

(NOFA). 

SUMMARY: Purpose of Program: The 

purpose of the Brownfields Economic 

Development Initiative (BEDI) program 

is to enhance the security of a loan 

guaranteed by HUD under Section 108 

of the Housing and Community 

Development Act of 1974, as amended, 

for the same brownfields economic 

development project, or to improve the 

viability of a brownfields economic 

development project financed with the 

Section 108-guaranteed loan, in order to 

stimulate economic development by 

local governments and private sector 

parties at brownfields sites and to return 

those sites to productive, economic use. 

All BEDI grants must be used in 

conjunction with a new Section 108- 

guaranteed loan commitment. 

Overview Information 

A. Federal Agency Name: Department 

of Housing and Urban Development, 

Office of Community Planning and 

Development. 

B. Funding Opportunity Title: 

Brownfields Economic Development 

Initiative. 

C. Announcement Type: Initial 

announcement. 

D. Funding Opportunity Number: The 

Federal Register number is FR–5142– 

N–01. The OMB approval number is 

2506–0153. 

E. Catalog of Federal Domestic 

Assistance (CFDA) Number(s): 

Brownfields Economic Development 

Initiative (BEDI), 14.246. 

F. Dates: The application deadline 

date is December 24, 2007. Applications 

must be received and validated by 

http://www.grants.gov/gov/applicants/ 

apply_for_grants.jsp no later than 

11:59:59 pm on the application deadline 

date. Please see the Notice of HUD’s 

FY2007 NOFA Policy Requirements and 

General Section to the FY2007 

SuperNOFA for HUD’s Discretionary 

Programs (General Section) published 

on January 18, 2007 (72 FR 2396) for 

information on electronic deadline and 

timeliness requirements. 

G. Additional Overview Content 

Information: BEDI funds are used to 

enhance the security of a loan 

guaranteed by HUD under Section 108 

of the Housing and Community 

Development Act of 1974, as amended, 

for the same brownfields economic 

development project, or to improve the 

viability of a brownfields economic 

development project financed with the 

Section 108-guaranteed loan, in order to 

stimulate economic development by 

local governments and private sector 

parties at brownfields sites and to return 

those sites to productive economic use. 

All BEDI grants must be used in 

conjunction with a new Section 108- 

guaranteed loan commitment. 

HUD encourages brownfields 

economic development projects that 

propose the redevelopment of a 

brownfield site through new 

investments by identified private sector 

parties in addition to BEDI/Section 108 

financing and that will directly result in 

new business or job creation, increases 

in the local tax base or other near-term, 

measurable economic benefits. 

Those interested in applying for 

funding under this program should 

review carefully the General Section of 

the SuperNOFA published on January 

18, 2007 (72 FR 2396), the Introduction 

to the FY2007 SuperNOFA published 

on March 13, 2007 (72 FR 11434) and 

the Fiscal Year 2007 SuperNOFA for 

HUD’s Discretionary Programs; 

Supplementary Information and 

Technical Corrections published on 

May 11, 2007 (72 FR 27032) and the 

following additional information. 

Full Text of Announcement 

I. Funding Opportunity Description 

A. Authority 

BEDI is authorized pursuant to 

Section 108(q), Title I of the Housing 

and Community Development Act of 

1974, as amended (42 U.S.C. 5301). 

B. Program Description 

BEDI is designed to help local 

governments redevelop brownfields, 

defined in this NOFA as abandoned, 

idled, or underutilized real property, 

including industrial and commercial 

facilities, where expansion or 

redevelopment is complicated by the 

presence or potential presence of 

environmental contamination. A BEDI 

grant award will be conditioned upon, 

and must be used in conjunction with, 

a new (i.e., not previously approved) 

Section 108-guaranteed loan 

commitment. Both Section 108 loan 

guarantee proceeds and BEDI grant 

funds are initially made available by 

HUD to units of general local 

government eligible for assistance under 

HUD’s Community Development Block 

Grant (CDBG) program (specifically, the 

Entitlement and State programs, certain 

jurisdictions in the state of Hawaii 

under the Small Cities program, and the 

insular areas of Guam, American Samoa, 

the Northern Mariana Islands, and the 

Virgin Islands). A local government may 

re-loan the Section 108 loan proceeds 

and provide BEDI funds to a business or 

other public entity eligible to carry out 

a specific approved brownfields 

economic development project, or the 

public entity may carry out the eligible 

project itself. In either case, BEDI grant 

funds and the Section 108 proceeds 

must be used to support the same 

eligible BEDI project. 

Under this program, CDBG 

entitlement and non-entitlement 

grantees (and states for state-assisted 

non-entitlement jurisdictions) pledge 

their continuing CDBG allocations as 

security for the Section 108 loans 

guaranteed by HUD. BEDI grant funds 

are intended to reduce grantees’ 

potential loss of future CDBG 

allocations by: 

1. Strengthening the economic 

feasibility of a project financed with 

Section 108 funds (and thereby 

increasing the probability that the 

project will generate enough cash to 

repay the guaranteed loan); 

2. Directly enhancing the security of 

the Section 108-guaranteed loan; or 

3. Employing a combination of these 

or other risk mitigation techniques. 

BEDI funds must be used as the 

stimulus for local governments and/or 

private sector parties to commence 

redevelopment or continue phased 

redevelopment efforts of brownfields 

sites where contamination is present or 

potentially present and a redevelopment 

plan exists. HUD desires to see BEDI 

and Section 108 funds used to finance 

projects and activities that involve 

investment in the brownfields site by an 

identified private sector party that will 

provide near-term results and 

measurable economic benefits, such as 

job creation and increases in the local 

tax base. 

C. Program Definitions 

Unless otherwise defined herein, 

terms defined in this NOFA shall have 

the same respective meanings as 

provided for in 24 CFR part 570. 

Act means Title I of the Housing and 

Community Development Act of 1974 

(42 U.S.C. 5301 et seq.). 

Application means a single set of 

documents, including a request for 

Section 108 loan guarantee assistance, 

submitted by an eligible applicant for 

BEDI grant funds, in accordance with 

the provisions of this NOFA, to finance 

a brownfields economic development 


rfrederick on PROD1PC67 with NOTICES2
Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 54325 

project. Section IV.B.1.c. of this NOFA 

provides additional information on the 

nature and forms of Section 108 loan 

guarantee requests that must be 

submitted to HUD along with each BEDI 

application. 

Brownfields means abandoned, idled, 

or under-used real property (including 

industrial and commercial facilities) 

where expansion or redevelopment is 

complicated by the presence or 

potential presence of contamination. 

Brownfields Economic Development 

Initiative (BEDI) funds means the 

appropriated funds made available for 

the competition under this NOFA from 

any available appropriation. 

Brownfields Economic Development 

Initiative (BEDI) project or brownfields 

economic development project means a 

single activity or a group of activities 

constituting a planned, continuous, 

single undertaking that is eligible under 

Section 108(q) of the Act and under 24 

CFR 570.703 and projected to create or 

retain businesses or jobs, provide area or 

housing benefit to low- and moderateincome persons, redevelop blighted 

areas or sites, or otherwise lead to 

measurable economic benefits from 

redevelopment of one or more 

brownfields sites within five years. 

CDBG funds means those funds 

collectively so defined at 24 CFR 570.3, 

including grant funds received pursuant 

to Section 108(q) and this NOFA. 

Economic Development Initiative 

(EDI) grant means the provision of 

economic development grant assistance 

under Section 108(q) of the Act, as 

authorized by Section 232 of the 

Multifamily Housing Property 

Disposition Reform Act of 1994 (Pub. L. 

103–233, approved April 11, 1994). 

EPA means the U.S. Environmental 

Protection Agency. 

Firm Commitment means either a 

written agreement or letter of 

understanding by which an applicant or 

a third party: 

(1) Agrees to perform an activity or 

provide resources as specified in the 

application, and demonstrates their 

relationship to the proposed BEDI/ 

Section 108 project; 

(2) Specifies the dollar value of the 

commitment and demonstrates that it 

has the financial and organizational 

capacity to deliver the resources 

necessary to successfully complete the 

activity; and 

(3) Irrevocably commits the resources 

to the activity either through cash or inkind services or contributions; if any 

portion is to be financed through a grant 

or loan from another public or private 

organization, that institution’s grant or 

loan commitment must be firmly 

committed as well. 

Any such agreement or letter of 

understanding shall be understood as 

being contingent upon receipt of the 

BEDI grant. Funds expended prior to the 

submission of the BEDI application will 

not be considered as firmly committed 

funds for purposes of this NOFA. 

Additional information related to firm 

commitments of other resources is 

provided in Section V.A.2.d. of this 

NOFA, Rating Factor 4 (Leveraging of 

Other Financial Resources). See Section 

IV.B.3.c. of the General Section for 

instructions on how third party 

documents are to be submitted 

electronically. 

Showcase Community means an 

applicant chosen by the federal 

government’s Brownfields National 

Partnership for inclusion in the federal 

government’s Brownfields Showcase 

Communities program. A list of the 

federally designated Brownfield 

Showcase Communities is provided on 

the HUD Web site at http:// 

www.epa.gov/swerosps/bf/html-doc/ 

showfact.ftm. 

Strategic Plan means a strategy or 

course of action developed and agreed 

to by the nominating local 

government(s) and state(s) and 

submitted in partial fulfillment of the 

application requirements for an 

Empowerment Zone, Enterprise 

Community, or a Renewal Community, 

designated pursuant to 24 CFR parts 

597, 598 or 599. 

D. Program Background 

HUD has multiple programs that are 

intended to stimulate economic and 

community development and promote 

economic revitalization of distressed 

areas, and which can be effectively 

employed to address and remedy 

brownfields conditions. Primary among 

HUD’s resources are the Community 

Development Block Grant (CDBG) 

program and the Section 108 loan 

guarantee program. 

1. CDBG. The CDBG program provides 

grant funds by formula to local 

governments (either directly or through 

states) to carry out community and 

economic development activities ($3.7 

billion appropriated in FY2007). The 

Section 108 loan guarantee program 

provides CDBG-eligible communities 

with a source of financing for economic 

development, public facilities, and other 

eligible large-scale physical 

development projects. HUD is 

authorized pursuant to Section 108 to 

guarantee notes issued by CDBG 

entitlement communities and nonentitlement units of general local 

government eligible to receive funds 

under the CDBG States’ program, as well 

as certain non-entitlement units of 

general local government in the state of 

Hawaii funded under 24 CFR part 570, 

subpart F. The Section 108 program is 

subject to the regulations applicable to 

the CDBG program at 24 CFR part 570 

as described in 24 CFR part 570, subpart 

M. 

2. Section 108 Loan Guarantees. The 

loan guarantee authority for the Section 

108 program is estimated at $137 

million in loan guarantee authority for 

FY2007. 

Under this program, communities 

(states and insular areas, as applicable) 

are required to pledge their continuing 

CDBG allocations as security for loans 

guaranteed by HUD. The Section 108 

program, however, does not require 

CDBG funds to be escrowed for loan 

repayment (unless such an arrangement 

is specifically negotiated as loan 

security and included in the applicable 

‘‘Contract for Loan Guarantee 

Assistance’’). This means that a 

community can ordinarily continue to 

spend its existing allocation for other 

CDBG purposes, unless needed for loan 

repayment. 

3. Additional Security for Section 108 

Loan Guarantees. Applicants should be 

aware of the need to provide additional 

security for the Section 108 loan 

guarantee pursuant to 24 CFR 

570.705(b)(3). Although a public entity 

(and the corresponding state for a stateassisted non-entitlement entity) is 

required by the Act to pledge its current 

and future CDBG allocations as security 

for the Section 108 loan guarantee, it 

will usually be required to furnish 

additional collateral. In most cases, the 

additional collateral consists (in whole 

or in part) of the asset financed with the 

Section 108 loan funds (e.g., a loan 

made to a business as part of an 

economic development project and the 

related mortgage from the business). 

Applications proposing uses for BEDI 

funding that directly enhance the value 

of the asset(s) securing the Section 108 

loan will help ensure that the projectbased asset(s) will satisfy the additional 

collateral requirements. 

4. Integration of Other Government 

Economic Development and 

Brownfields Programs. HUD encourages 

local governments which are assisted by 

(a) other federal or state economic 

development programs, (b) other federal 

brownfields programs (e.g., the federal 

Brownfields Showcase Community 

program, EPA’s Assessment, Revolving 

Loan Fund Cleanup or Grant programs, 

or (c) state-supported brownfields 

programs to integrate efforts arising 

from those programs in developing 

projects for assistance under HUD’s 

BEDI and Section 108 programs. 

Applicants should elaborate upon these 


rfrederick on PROD1PC67 with NOTICES2
54326 Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 

ties in their response to the appropriate 

rating factors in Section V.A.2. of this 

NOFA (e.g., ‘‘Capacity of the 

Applicant,’’ ‘‘Soundness of Approach,’’

or ‘‘Leveraging Resources’’—Rating 

Factors 1, 3, and 4, respectively.) 

II. Award Information 

A. Available Funds 

HUD has available approximately 

$32.9 million for grant awards under 

this BEDI NOFA, consisting of $9.9 

million through appropriations under 

the Revised Continuing Appropriations 

Resolution, 2007 (Pub. L. 110–5), 

February 15, 2007 (these funds are 

authorized by Section 108(q) of the Act 

as described above) and $23 million of 

deobligated and recaptured funds from 

previous BEDI awards. If any additional 

funds become available for the BEDI 

program during FY2007, including 

through the further deobligation and 

recapture of previous BEDI awards, 

HUD may either fund additional 

applicants in accordance with this 

NOFA, or may add these funds to funds 

available for future competitions 

pursuant to Section 108(q) of the Act. 

B. Maximum Award 

The maximum amount of a BEDI 

award under this competition is $2 

million per project. An application in 

excess of $2 million will be reduced to 

the extent HUD determines that such a 

reduction is appropriate and the project 

remains feasible. 

C. Limitations on Grant Amounts 

1. Ratio of Section 108-Guaranteed 

Loan to BEDI Grant. HUD expects to 

approve BEDI grant amounts for 

approvable applications with a range of 

ratios of BEDI grant funds awarded to 

new Section 108-guaranteed loan 

commitments for the same project, but 

the minimum ratio must be $1.00 of 

Section 108-guaranteed loan 

commitments for every $1.00 of BEDI 

grant funds in order to receive 

consideration for funding. Section 

V.A.2.d., Rating Factor 4 (Leveraging of 

Resources), provides additional 

information on the required ratio of 

BEDI to Section 108 funds. 

2. Reduction or Deobligation of BEDI 

Grant Award. 

a. After selection, but prior to grant 

award, if HUD determines that an 

application can be funded at a lesser 

BEDI grant amount than requested and 

still be feasible and consistent with the 

proposed plan and the purposes of the 

Act, it reserves the right to reduce the 

amount of the BEDI award and/or 

increase the required Section 108 loan 

guarantee commitment. 

b. In the event a BEDI grant is 

awarded and has been reduced below 

the original request (e.g., the application 

contained some activities that were 

ineligible, exceeded the $2 million cap, 

or there were insufficient funds to fund 

the last competitive application at the 

full amount requested), the applicant 

will be required to modify the project 

plans and application to conform to the 

terms of HUD approval before HUD will 

execute a grant agreement. 

c. HUD also may proportionately 

reduce or deobligate the BEDI award if 

a grantee does not submit an approvable 

Section 108 loan guarantee application, 

issue Section 108-guaranteed 

obligations, and receive loan guarantee 

proceeds on a timely basis (including 

any extension authorized by HUD) in 

the amount required by the BEDI/108 

leveraging ratio, which will be approved 

by HUD as a special condition of the 

BEDI grant award (see Section 

IV.B.1.c.(2) of this NOFA). 

3. Increased Request for Section 108 

Loan Guarantee Assistance. In the case 

of a requested increase in guarantee 

assistance for a project with a 

previously approved Section 108 loan 

guarantee commitment (as further 

discussed in Section IV.B.1.(4)), the 

BEDI assistance approved will be based 

only on the additional amount of 

Section 108 loan guarantee assistance 

requested. 

III. Eligibility Information 

A. Eligible Applicants 

Any public entity eligible to apply for 

Section 108 loan guarantee assistance in 

accordance with 24 CFR 570.702, 

including Guam, the Northern Marianas, 

American Samoa, and the Virgin Islands 

for FY2007, may apply for BEDI grant 

assistance under Section 108(q). Eligible 

applicants are CDBG entitlement units 

of general local government and nonentitlement units of general local 

government eligible to receive loan 

guarantees under 24 CFR part 570, 

subpart M. Urban Counties, as defined 

at 24 CFR 570.3 and 570.307, are 

eligible applicants for BEDI funds; units 

of general local government that 

participate in an Urban County program 

are not independently eligible 

applicants. For non-entitlement 

applicants other than those subject to 24 

CFR part 570, subpart F (which applies 

only to the state of Hawaii), applicants 

are required to provide evidence in the 

BEDI application from an authorized 

official of the state agency responsible 

for administering the State CDBG 

program stating that it supports the 

related Section 108 loan with a pledge 

of its CDBG allocations pursuant to the 

requirements of 24 CFR 570.705(b)(2). 

Such evidence must be provided by 

form HUD–40122, titled ‘‘SECTION 108 

LOAN GUARANTEE: State 

Certifications Related to Nonentitlement Public Entities.’’ This form 

may be downloaded as part of the 

application package from the Internet at 

http://www.grants.gov/applicants/ 

apply_for_grants.jsp. Non-entitlement 

public entities in 49 states and Puerto 

Rico are eligible to participate in the 

Section 108 and BEDI programs, with 

assistance of the state’s or 

commonwealth’s pledge of CDBG 

allocations. The non-entitlement entities 

in Hawaii are able to make their own 

repayment pledge since they receive a 

fixed amount of annual CDBG funding. 

B. Cost Sharing or Matching 

As described further in Section 

V.A.2.d. of this NOFA, under Rating 

Factor 4 (Leveraging of Resources), 

applications which evidence a greater 

level of other funds firmly committed to 

the BEDI project will receive more 

points under Rating Factor 4. In 

addition, a BEDI grant must be used 

with at least an equal amount of Section 

108 loan guarantee proceeds for the 

same brownfields economic 

development project. 

C. Other 

1. Eligible Activities and National 

Objectives 

a. Applicants for BEDI grant funds 

and Section 108 loan guarantee funds 

must demonstrate that funds will be 

used for activities listed at 24 CFR 

570.703 and carried out as part of a 

BEDI project as defined in this NOFA 

and meet the CDBG requirements at 24 

CFR Sections 570.200, 570.208 and 

570.209, as applicable. All applicants 

must clearly identify in their narrative 

response to Rating Factor 3 (Soundness 

of Approach) in Section V.A.2.c. of this 

NOFA each of the eligible activities that 

will be carried out under 24 CFR 

570.703. 

With respect to BEDI projects that 

include a housing component, 

applicants are cautioned that the 

eligible activities at 24 CFR 570.703 do 

not allow BEDI and Section 108 funds 

to be used to finance the costs of the 

construction of housing, unless such 

construction is undertaken by a 

Community Based Development 

Organization (CBDO) or a not-for-profit 

organization serving the development 

needs of a community in a nonentitlement area as part of a community 

economic development project, in 

accordance with 24 CFR 570.703(i)(2) 

and 24 CFR 570.204(a)(2). Provisions of 


rfrederick on PROD1PC67 with NOTICES2
Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 54327 

24 CFR 570.703(j) that authorized the 

use of BEDI or Section 108 funds for 

housing construction have expired and 

are no longer applicable, as the statute 

referenced therein is no longer in effect. 

For projects that include the 

construction of housing, BEDI and 

Section 108 funds may be used to 

finance activities necessary to construct 

such housing, such as acquisition and 

related demolition and clearance on the 

acquired site, site improvements, public 

facilities and other eligible activities 

subject to each of the eligible activity 

provisions at 24 CFR 570.703; and 

b. Applicants must demonstrate that 

each activity assisted with Section 108 

loan guarantee or BEDI funds will meet 

a national objective of the CDBG 

program as described in 24 CFR 

570.208. All applicants must clearly 

identify in their narrative response to 

Rating Factor 3 (Soundness of 

Approach) in Section V.A.2.c. of this 

NOFA, the CDBG national objective to 

be achieved by the proposed project and 

provide the appropriate CDBG national 

objective regulatory citation found at 24 

CFR 570.208. Applicants must also 

address, when applicable, how the 

proposed activities will comply with the 

public benefit standards of the CDBG 

program as reflected in the regulation at 

24 CFR 570.209. 

c. A grantee’s aggregate use of its 

CDBG funds, including any Section 108 

loan guarantee proceeds and Section 

108(q) (BEDI) funds provided pursuant 

to this NOFA, must comply with the 

CDBG primary objective requirements as 

described in Section 101(c) of the Act 

and 24 CFR 570.200(a)(3) for 

entitlement grantees, or 24 CFR 570.484 

in the case of a recipient under a state’s 

program, requiring that, over the period 

of time specified in the applicant’s (or 

State’s) CDBG certification, not less than 

70 percent of the aggregate expenditures 

of CDBG funds be expended for 

activities benefiting low- and moderateincome persons under the criteria of 24 

CFR 570.208(a) or 570.208(d)(5) or (6). 

2. Brownfields Redevelopment 

As described further in Section 

V.A.2.c. of this NOFA, in the narrative 

response to Rating Factor 3 (Soundness 

of Approach) applicants must: (1) 

Describe the nature and extent of the 

brownfields problem(s) actually or 

potentially affecting the site and/or 

structure(s) already on the site; and (2) 

how the proposed activities will 

contribute to redevelopment of the site 

and/or structures. 

3. General Section Threshold 

Requirements 

a. Applicants should carefully review 

the threshold requirements found in 

Section III.C. of the General Section that 

could result in the failure to receive 

funding under this program. Applicants 

for BEDI grant funds must comply with 

the statutory, regulatory, threshold, and 

public policy requirements listed in the 

General Section, except as otherwise 

specifically provided in this NOFA. In 

particular, applicants should carefully 

review those provisions that could 

result in the failure to receive funding, 

including the DUNS Number 

Requirement, Compliance with Fair 

Housing and Civil Rights Laws, 

provisions relating to Delinquent 

Federal Debts, and the Name Check 

Review. 

b. The Dun and Bradstreet Universal 

Numbering System (DUNS) Number 

Requirement. Refer to the General 

Section for information regarding the 

DUNS requirement. You will need to 

obtain a DUNS number to receive an 

award from HUD. You will also need a 

DUNS number to complete your 

electronic application as it is a 

mandatory field on the electronic 

application. The Grants.gov registration 

also requires use of the DUNS number 

which is used to match with Central 

Contractor Registration (CCR) and 

Internal Revenue Service Records. 

Please see the General Section for more 

information. If there is a discrepancy 

between the DUNS number, CCR and 

IRS information, the Grants.gov 

registration process cannot be 

completed until the discrepancy is 

cleared. Applicants should immediately 

start or update their Grants.gov 

registration with the publication of this 

NOFA. 

c. The maximum number of points to 

be awarded under this NOFA is 104. To 

be eligible for funding, a BEDI 

application must obtain a total score of 

at least 75 points. All applications 

meeting program requirements and 

General Section thresholds will be rated 

under the selection criteria provided in 

Section V.A.2. below. 

d. Federal Debt. In addition to the 

requirements in the General Section, 

applicants at the time of award that 

have Federal debt or are in default of an 

agreement with the IRS will not be 

funded. Applicants selected for funding 

have an obligation to report to HUD 

changes in status of a current IRS 

agreement covering federal debt. 

4. Other Program Requirements 

a. BEDI Funding Request. A single 

BEDI application must contain a request 

for funds for a single BEDI/108 project. 

The application must propose activities 

expected to result in redevelopment of 

one or more brownfields sites. An 

applicant may submit an additional 

application for each additional 

unrelated BEDI/108 project, but in no 

event will HUD rate and rank more than 

one BEDI project per application. 

b. Related Section 108 Loan 

Guarantee Request. The request for 

Section 108 Loan Guarantee assistance 

must provide for a minimum ratio of 

$1.00 of requested Section 108 loan 

guarantee commitments for every $1.00 

of BEDI grant funds requested, or a 

higher ratio, as needed for the project. 

c. Nonentitlement Applications. 

Applications submitted by 

nonentitlement public entities (except 

for those in Hawaii and the insular areas 

which now receive fixed amounts of 

CDBG funds annually) must provide for 

the state’s or commonwealth’s 

certification agreeing to pledge its CDBG 

allocations to receive funding 

consideration, as evidenced by form 

HUD–40122. See the General Section of 

the SuperNOFA instructions for 

submission of third party documents. 

d. Narrative Response to Rating 

Factors. Each BEDI application must 

provide narrative statements in response 

to each of the rating factors below in 

Section V.A.2. of this NOFA. 

e. Time Frame for Submission of 

Section 108 Applications. All 

applications for Section 108 Loan 

Guarantee Assistance required for 

approved BEDI projects must be 

submitted within 60 days of written 

notice of BEDI selection, as provided for 

in Section IV.B.1.c.(2) of this NOFA. 

f. HUD Environmental Requirements. 

Beginning with the submission of a 

BEDI application through and after 

HUD’s award of BEDI grant funds, 

pursuant to 24 CFR 570.604, each 

project or activity assisted under this 

program is subject to the provisions of 

24 CFR part 58. This includes 

limitations on the commitment of HUD 

and non-HUD funds by the BEDI 

applicant or grantee and Section 108 

public entity, as well as other 

participants in the development 

process, prior to the completion of 

environmental review, notification, and 

release of funds. Neither grant nor loan 

funds can be disbursed by HUD until a 

request for release of funds is submitted 

and the requirements of 24 CFR part 58 

have been met. All public entities, 

including non-entitlement public 

entities, shall submit the request for 

release of funds and related 

certification, required pursuant to 24 

CFR part 58, to the appropriate HUD 


rfrederick on PROD1PC67 with NOTICES2
54328 Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 

field office for each project to be 

assisted. 

g. Compliance with Environmental 

and Other Laws. An award of BEDI 

funding does not, in any way, relieve 

the applicant or third party users of 

BEDI funds from compliance with all 

applicable federal, state, and local laws 

and regulations, particularly those 

addressing the environment. Applicants 

are further advised that HUD may 

require evidence that any project 

involving remediation has been or will 

be carried out in accordance with 

applicable law, including voluntary 

clean up programs. 

h. CDBG Program Regulations. In 

addition to 24 CFR 570.701 

(Definitions), 570.702 (Eligible 

applicants), and 570.703 (Eligible 

activities), the CDBG regulatory 

requirements cited in 24 CFR 570.707, 

including subparts J (Grant 

Administration), K (Other Program 

Requirements), and O (Performance 

Reviews), also govern the use of BEDI 

funds, as applicable. 

i. Obligation to Affirmatively Further 

Fair Housing. All BEDI grantees are 

obliged to affirmatively further fair 

housing, even when the proposed 

activities do not appear to be directly 

related to housing. Therefore, applicants 

that propose to use BEDI funds must 

include in their applications an 

explanation of how they propose to 

further fair housing opportunities for 

persons on the basis of race, color, 

national origin, sex, religion, familial 

status, or disability. Applicants should 

respond to this requirement in Section 

V.A.2.c. of this NOFA, under Rating 

Factor 3, subfactor (1)(b). Affirmative 

activities include, but are not limited to: 

Initial and periodic assessments of the 

extent to which affordable and 

accessible housing opportunities are 

provided or denied to persons by race, 

color, national origin, sex, religion, 

familial status, or disability; outreach to 

persons in underserved population 

groups or advocacy organizations 

representing such persons; affirmative 

fair marketing of job or housing 

opportunities; furthering housing 

choice; addressing environmental 

justice concerns; ensuring 

nondiscrimination and accessibility for 

the physically handicapped; ensuring 

consistency with the consolidated plan; 

or ensuring that employment, housing 

and other benefits of the BEDI grant are 

made available to those individuals and 

families living at or near the 

brownfields site prior to its 

redevelopment. 

j. Policy Priorities. Applicants are 

reminded of the Department’s Policy 

Priorities for FY2007 found in Section 

V.B. of the General Section, several of 

which apply to this NOFA, as described 

in Section V.A.2.e. below, under Rating 

Factor 5 (Achieving Results and 

Program Evaluation). 

k. Ineligible Sites. Applicants must 

propose sites that currently meet the 

definition of brownfields in this 

program NOFA. Applicants may not 

propose projects on sites which are: (i) 

Listed or proposed to be listed on EPA’s 

National Priority List (NPL); (ii) subject 

to unilateral administrative orders, court 

orders, administrative consent orders or 

judicial consent decrees issued or 

entered into by parties under the 

Comprehensive Environmental 

Response, Compensation, and Liability 

Act of 1980 (CERCLA), as amended; or 

(iii) subject to the jurisdiction, custody, 

or control of the United States 

Government. In order to be eligible to 

receive an award under this program, 

applicants will be required in Section 

V.A.2.c., Rating Factor 3, Soundness of 

Approach, to indicate that the proposed 

BEDI project will not be undertaken at 

an ineligible site as provided herein. 

l. Prior Approved Section 108– 

Guaranteed Loans. BEDI grant 

assistance cannot be used to leverage a 

Section 108 loan guarantee approved 

prior to the date of HUD’s 

announcement of a BEDI grant pursuant 

to this NOFA, unless the applicant 

requests to deobligate previously 

approved commitment authority as 

provided in Section IV.B.1.c.(5) of this 

NOFA. In no event, however, may a 

previously approved Section 108 

commitment to be used with a prior 

BEDI or EDI award be subject to such 

deobligation. 

m. Use of Section 108 Solely for 

Security. A BEDI award will not be 

made if the Section 108 request 

contained in the application (See 

Section IV.B.1.c. of this NOFA) calls for 

the use of the Section 108-guaranteed 

obligation solely as security for other 

financing on the project. 

IV. Application and Submission 

Information 

A. Addresses To Request Application 

Package 

1. Copies of the published NOFAs and 

application forms for HUD programs 

announced through NOFA may be 

downloaded from the Grants.gov Web 

site at http://www.grants.gov/ 

find_grant_opportunities.jsp; if you 

have difficulty accessing the 

information you may receive customer 

support from Grants.gov by calling their 

Support Desk at (800) 518–GRANTS, or 

sending an e-mail to 

support@grants.gov. The operators will 

assist you in accessing the information. 

The hours of the Support Desk are 7 

a.m. to 9 p.m. Eastern time. 

2. Satellite Broadcasts. HUD will hold 

informational broadcasts via satellite for 

potential applicants to learn more about 

the BEDI program and the preparation of 

BEDI application(s). For more 

information about the date and time of 

the broadcast, consult the Web site 

http://www.hud.gov/offices/adm/grants/ 

nofa07/snbroadcast.doc. 

B. Content and Form of Application 

Submission 

1. Content of Application 

A complete application for a BEDI 

grant under this NOFA must contain the 

items listed below. Applicants by 

signing the SF–424 are also agreeing to 

the Certifications and Assurances found 

in the General Section and this NOFA. 

All forms required for application 

submission can be found in the 

application and instruction downloads 

for the BEDI program on http:// 

www.grants.gov/applications/ 

apply_for_grants.jsp. 

a. Checklist and Submission Table of 

Contents indicating the submission 

items included in the application can be 

found in Section VIII, Appendix A, of 

this NOFA. Applicants are not required 

to submit the Checklist but are 

encouraged to review it to ensure that 

they have submitted a complete 

application. 

b. EDI/BEDI/Section 108 Funding 

Eligibility Statement. A completed EDI/ 

BEDI/Section 108 Funding Eligibility 

Statement (Exhibit D of form HUD–

40123). 

c. Request for Loan Guarantee 

Assistance. A request for loan guarantee 

assistance under Section 108, with the 

project name clearly identified (and the 

same name of the BEDI project being 

applied for), as further described below. 

Full application requirements for the 

Section 108 program are found at 24 

CFR 570.704. Non-entitlement 

applicants (except those in Hawaii and 

the insular areas) must accompany this 

request with the State Certifications 

Related to Nonentitlement Public 

Entities (form HUD–40122) in order to 

be considered for BEDI funding. 

The request for loan guarantee 

assistance may take any of the five 

forms defined in paragraphs (1), (2), (3), 

(4), or (5) below. Notwithstanding the 

form of the request for new Section 108 

loan guarantee assistance, the applicant 

must include citations to the specific 

regulatory subsection supporting 

activity eligibility and National 

Objectives compliance for the Section 

108 funds described in the application. 


rfrederick on PROD1PC67 with NOTICES2
Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 54329 

(See Section III.C.1. of this NOFA.) Both 

the BEDI and Section 108 funds must be 

used in conjunction with the same BEDI 

project. Applicants are encouraged to 

consult with HUD’s Financial 

Management Division in Headquarters 

CPD, at (202) 708–1871, before 

submission of 108 and/or BEDI 

applications if unsure of CDBG national 

objectives, eligibility of activities, 

program benefits citations and the tests 

thereof. The request for new Section 108 

guarantee assistance may be presented 

in any of the following ways: 

(1) Concurrent Application Submitted 

Under Separate Cover. A complete 

application for a new Section 108 loan 

guarantee(s), including the documents 

listed at 24 CFR 570.704(b), must be 

submitted under separate cover in 

accordance with the procedures in 

Section IV.F.3 below. Any full 

application for loan guarantee assistance 

under Section 108 must also be 

submitted to the appropriate HUD field 

office concurrently with its submission 

to Headquarters. As described further in 

Section V.A.2.c., in Rating Factor 3 

(Soundness of Approach), two points 

will be awarded for the submission of a 

full Section 108 loan guarantee 

application with a BEDI application. 

Please refer to section IV.F.3. of this 

NOFA for further explanation of how to 

properly submit a concurrent Section 

108 loan guarantee application. 

(2) Subsequent Application. A brief 

description (not to exceed three pages) 

of the project to be applied for in a 

subsequent new Section 108 loan 

guarantee application(s). Such a 108 

application(s) shall be submitted within 

60 days of written notice of BEDI 

selection, with HUD reserving the right 

to extend such period on a case-by-case 

basis where HUD determines there is 

evidence of good cause. BEDI awards 

will be conditioned on approval of 

actual Section 108 loan commitments 

and loan guarantee proceeds in a 

specific ratio of BEDI funds to Section 

108 funds as approved by HUD in the 

BEDI award. The description provided 

in the BEDI application must be 

sufficient to support the basic eligibility 

of the proposed project and activities for 

Section 108 assistance. (See Section 

III.C.1. of this NOFA.) 

(3) Pending, Unapproved Application. 

A request to use the BEDI grant award 

in conjunction with a pending, 

unapproved Section 108 loan guarantee 

application. The request must identify 

the project name associated with the 

pending application and the date of 

submission. Any proposed amendment 

to the pending Section 108 application 

must be submitted under separate cover, 

as provided for in Section IV.F.3. below. 

An applicant’s request to use the BEDI 

award in conjunction with a pending 

application shall be deemed by HUD to 

constitute a request to suspend separate 

processing of the Section 108 

application. The Section 108 

application will not be approved until, 

on, or after the date of the related BEDI 

award. 

(4) Increase to a Project Assisted 

Under a Previously Approved 

Application. A request for Section 108 

loan guarantee assistance (analogous to 

Section IV.B.1c.(1) or (2) above of this 

section) may propose new Section 108 

guarantee assistance in addition to the 

amount of Section 108 assistance for a 

project assisted under a previously 

approved Section 108 application. 

However, any amount of Section 108 

loan guarantee authority approved 

before HUD’s announcement of a BEDI 

grant for the same project is not eligible 

to be used in conjunction with a BEDI 

grant under this NOFA. 

(5) Deobligation of Previously 

Approved Section 108 Authority Plus a 

New Request. A request to deobligate a 

previous commitment of Section 108 

loan guarantee authority to the 

applicant that is no longer to be used by 

the applicant (except for an amount 

required as a condition of a previously 

approved BEDI or EDI award), combined 

with a new request or application for 

Section 108 loan guarantee assistance. 

Such request or application may be a 

full application as provided for in 

paragraph (1) above, a request for 108 

assistance submitted within 60 days as 

provided for in paragraph (2) above, a 

pending unapproved application as 

provided for in paragraph (3) above, or 

an increase to a project assisted under 

a previously approved application as 

provided in paragraph (4) above. 

(6) In no event may a Section 108 loan 

guarantee amount that is required to be 

used in conjunction with a previously 

approved BEDI or EDI grant award as of 

the date of the submission of the 

application, whether or not the Section 

108 loan guarantee has been approved 

as of the date of this NOFA, be used in 

conjunction with a new BEDI award 

under this NOFA. For example, if a 

public entity has a previously approved 

Section 108 loan guarantee commitment 

of $12 million, even if none of the funds 

have been utilized, or if the public 

entity had previously been awarded a 

BEDI grant of $1 million and had agreed 

to submit a Section 108 loan application 

for $10 million in support of that BEDI 

grant, the public entity’s application 

under this NOFA must propose to 

increase the amount of its total Section 

108 loan guarantee commitments 

beyond those amounts to which it has 

previously agreed (i.e., the $12 million 

or $10 million Section 108 loan 

guarantee commitments in this 

example). 

d. Narrative Responses to Factors for 

Award (not to exceed 15 double-spaced, 

81⁄2 x 11 inch single-sided pages, with 

one-inch margins on all sides, for all 

responses): 

(1) Rating Factor 1: Capacity and 

Relevant Organizational Experience. 

Provide a narrative indicating the 

capacity of the applicant’s organization 

and staff and any known third parties to 

perform the work for which it is 

requesting funding. 

(2) Rating Factor 2: Need Statement 

Identifying the Level of Distress/Extent 

of the Problem. Provide a narrative 

statement including any documentation 

supporting the statement of need, 

accompanied by a completed Exhibit A 

of form HUD–40123. (See the General 

Section for instructions for submitting 

documentation found in the download 

instructions.) 

(3) Rating Factor 3: Soundness of 

Approach. Include the CDBG eligible 

activities, the CDBG National Objective, 

the source and nature of the present or 

potential environmental contamination, 

the budget, and the time frame for 

conducting activities and providing 

project benefits to address the needs 

identified in Rating Factor 2 in the 

narrative response, accompanied by 

Exhibits B and C of form HUD–40123. 

(4) Rating Factor 4: Leveraging 

Resources. The response to this factor 

should include any letters of firm 

commitment as defined in Section I.C. 

of this NOFA, and any evidence of 

financial capacity or CDBG resolutions, 

as appropriate. Such letters, evidence or 

resolution must be submitted under the 

procedures provided for in Section 

IV.B.3.c. of the General Section. 

(5) Rating Factor 5: Achieving Results 

and Program Evaluation. Provide a 

narrative response to this factor, 

accompanied by the logic model 

provided in the instructions download 

for the BEDI application on Grants.gov 

(Form HUD–96010) and, if applicable, 

form HUD–27300, relating to the 

removal of regulatory barriers to 

affordable housing, with required 

documentation. 

2. Forms, Certifications, and Assurances 

a. In addition to any forms submitted 

in response to Section IV.B.1. above, the 

following forms and certifications must 

also be submitted in accordance with 

the General Section: 

(1) Application for Federal Assistance 

(SF–424); 

(2) Applicant/Recipient Disclosure/ 

Update Report, HUD–2880 (‘‘HUD 


rfrederick on PROD1PC67 with NOTICES2
54330 Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 

Applicant Recipient Disclosure Report’’

on Grants.gov); and, 

(3) Certification of Consistency with 

RC/EZ/EC–II Strategic Plan, HUD–2990, 

if applicable; 

(4) Certification of Consistency with 

the Consolidated Plan (HUD–2991) if 

applicable; 

(5) Disclosure of Lobbying Activities 

(SF–LLL), if applicable; 

(6) Acknowledgement of Application 

Receipt (HUD–2993) (For use with 

paper application submissions); 

(7) You Are Our Client! Grant 

Applicant Survey (HUD–2994–A) 

(Optional); 

(8) Program Outcome Logic Model 

(HUD–96010); 

(9) Questionnaire for HUD’s Initiative 

on Removal of Regulatory Barriers 

(HUD–27300) (HUD Communities 

Initiative Form on Grants.gov) with 

supporting documentation or URL 

references; 

(10) Facsimile Transmittal (HUD–

96011) (Facsimile Transmittal Form on 

Grants.gov) (For use with electronic 

applications to provide third party 

letters and other documentation in 

accordance with the instructions found 

in the General Section); 

(11) Section 108 Loan Guarantee 

(State Certifications Related to Nonentitlement Public Entities) (HUD–

40122), if applicable; and 

(12) Responses to BEDI Application 

Rating Factors (HUD–40123, Exhibits A 

through D). 

C. Submission Dates and Times 

1. Application Submission Date 

Applications submitted through 

http://www.grants.gov/applicants/ 

apply_for_grants.jsp must be received 

and validated by Grants.gov no later 

than 11:59:59 p.m. Eastern time on the 

application deadline date. If an 

applicant receives a waiver of the 

electronic application requirement, the 

paper application must be received by 

the application deadline date. The 

approval to submit a paper copy 

application will provide detailed 

submission instructions. Paper 

applications will not be accepted unless 

the applicant has received a waiver of 

the electronic submission requirement. 

Please see the General Section for 

further information on application 

submission and timely receipt 

requirements. 

Be sure to provide a Project Name in 

Line 11 of the SF–424 (Application for 

Federal Assistance), and all references 

to the related Section 108 application 

should use the same project title. Be 

sure to complete the SF–424 cover page 

first, as the information from the cover 

page will be pre-populated. In addition 

a brief (one or two paragraph) 

description of all the activities (not just 

those to be funded with BEDI and 108 

funds) comprising the proposed project 

should be provided, preceding the 

narrative statements in response to the 

Rating Factors. This project description 

does not count against the 15-page 

overall limitation. 

Applicants should be sure to use the 

applicant legal name as used when 

registered with DUN and Bradstreet for 

the DUNS number, CCR and IRS, on the 

BEDI and Section 108 Loan 

applications. If there is a discrepancy in 

the legal name registered the applicant 

must resolve the discrepancy prior to 

submitting an application. 

2. Proof of Timely Submission 

Please see Section IV.C.4. of the 

General Section of the SuperNOFA for 

information regarding proof of timely 

submission. 

D. Intergovernmental Review 

BEDI is not subject to the provisions 

of Executive Order 12372, 

‘‘Intergovernmental Review of Federal 

Programs.’’

E. Funding Restrictions 

1. Repayment of Section 108 Principal 

The planned use of BEDI funds for the 

specific purpose of repayment of the 

principal amount of a Section 108- 

guaranteed loan is not an eligible 

activity under 24 CFR. 570.703 and 

therefore should not be proposed in a 

BEDI application. Under the ‘‘debt 

service reserve’’ eligible activity at 24 

CFR 570.703(k), however, the planned 

use of a limited amount of BEDI funds 

for the repayment of the principal of a 

Section 108-guaranteed loan is 

permissible if justified and approved by 

HUD under a particular application. 

Such a debt service reserve may be 

justified in the context of a loan loss 

reserve set up to support a ‘‘loan pool’’

consisting of a number of smaller third 

party loans. For example, the 

corresponding principal amount of the 

Section 108 loan might be repaid from 

a debt service reserve when a third party 

loan defaults and liquidation of security 

for the third party loan by or on behalf 

of the Section 108 borrower/BEDI 

grantee does not yield enough cash to 

redeem or defease the amount of Section 

108 principal corresponding to the 

defaulted third party loan. A debt 

service reserve may also be proposed 

and set up in an amount reasonable to 

pay principal and/or interest on a 

Section 108-guaranteed loan for a 

limited period, such as the start up 

period for an assisted business, or a 

construction period, when the cash flow 

resulting from the primary Section 108 

or BEDI-funded activity would not be 

sufficient to support repayment. HUD 

requires the applicant to provide 

information sufficient to support the 

reasonableness of the amount of a debt 

reserve in relation to its purpose. For 

any Section 108- and BEDI-assisted 

project, HUD will have rights under the 

Section 108 Contract for Loan Guarantee 

Assistance to use undisbursed BEDI 

funds, together with other pledged 

CDBG funds, to make payment on, or to 

defease, the Section 108 loan if HUD 

deems that action necessary in order to 

avoid the need for HUD to make a 

payment under its Section 108 loan 

guarantee. 

2. Subordination of Section 108 

Obligations 

Section 108 loan obligations may not 

be subordinated, directly or indirectly, 

to federally tax exempt obligations. 

Pursuant to Office of Management and 

Budget (OMB) Circular A–129 (Rev.) 

Appendix A, Sections II.2.c. and d., 

(Policies for Federal Credit Programs 

and Non-Tax Receivables), Section 108- 

guaranteed loan funds may not, directly 

or indirectly, support federally taxexempt obligations. 

3. Remediation by Responsible Parties 

BEDI grant funds shall not be used in 

any manner by grantees to provide 

public or private sector entities with 

funding to remediate conditions caused 

by their own actions, where the public 

entity (or other known prospective 

beneficiary of the proposed BEDI grant) 

has been determined responsible for 

causation and remediation by order of a 

court or a federal, state, or local 

regulatory agency, or is responsible for 

the remediation as part of a settlement 

approved by such a court or agency. 

Applicants will be required under 

Rating Factor 3, Soundness of 

Approach, to indicate that the proposed 

BEDI project will not be used to provide 

such assistance. 

4. Denial of Funding for Lack of Prior 

Performance 

HUD may deny funding consideration 

to all applicants that fail to submit a full 

and complete Section 108 loan 

application pursuant to 24 CFR 

570.704(b) in connection with a prior 

award of BEDI or competitive EDI grants 

on or before the application submission 

deadline under this NOFA. 

F. Other Submission Requirements 

1. Application Submission and 

Receipt Procedure. HUD requires 


rfrederick on PROD1PC67 with NOTICES2
Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 54331 

applicants to submit applications 

electronically through http:// 

www.grants.gov/applicants/ 

apply_for_grants.jsp. Applicants must 

submit their applications electronically 

via the Web site http://www.grants.gov/ 

applicants/apply_for_grants.jsp unless 

you request and are granted a waiver to 

the electronic submission requirements. 

This site has easy to follow step-by-step 

instructions that will enable you to 

apply for HUD assistance. 

Please read the General Section 

carefully and completely for the 

submission and receipt procedures for 

all applications because failure to 

comply may disqualify your 

application. 

2. Waiver of Electronic Submission 

Requirements. Applicants interested in 

applying for funding under this NOFA 

must submit their applications 

electronically or request a waiver from 

the Office of Community Planning and 

Development. Applicants should submit 

their waiver requests in writing by email. Waiver requests must be 

submitted no later than 15 days prior to 

the application deadline date and 

should be submitted to David Kaminsky 

at David_Kaminsky@hud.gov. 

Instructions regarding the number of 

copies to submit and the address where 

they must be submitted will be 

contained in any approval of the waiver 

request. Paper submissions must be 

received at the appropriate HUD 

office(s) no later than the deadline date. 

Please refer to Section IV.F.of the 

General Section for additional 

instructions on how to seek a waiver to 

the electronic submission requirement. 

3. Submission of Concurrent Section 

108 Application Under Separate Cover. 

Applicants that apply via Grants.gov 

should submit the Section 108 Loan 

Guarantee application using the mailing 

instructions below. 

a. The Section 108 Loan Guarantee 

application should have the same 

Project Title in Box 11 of the SF–424 as 

the related BEDI project. 

b. Concurrent Section 108 

Application deadline date. Applications 

from applicants choosing to submit a 

concurrent and complete Section 108 

application as provided for in Section 

IV.B.1.c. of this NOFA above, must be 

received no later than the BEDI 

application deadline date, to the 

addresses shown below, in order to 

receive points under Section V.A.2.c., 

Rating Factor 3, of this NOFA. 

The required number of copies should 

be sent to the locations indicated below. 

If HUD receives at least one completed 

concurrent Section 108 application at 

either HUD Headquarters or the 

appropriate HUD Field Office, HUD will 

utilize the complete application for its 

review purposes, provided it meets the 

deadline and timely submission 

requirements. 

c. Proof of Timely Submission of 

concurrent Section 108 applications. 

Proof of timely submission of a 

concurrent Section 108 application in 

accordance with these requirements 

consists of the Certificate of Mailing 

(USPS Form 3817) or electronic receipt 

showing the date and time and location 

of the mailing, provided by the United 

States Post Office showing mailing of 

the application with sufficient time for 

it to be received by HUD by the 

application due date. In the case of 

packages submitted to HUD via DHL, 

FedEx, or UPS, documentary proof of 

timely submission will be the delivery 

service receipt indicating the 

application was submitted to the 

delivery service with sufficient time for 

it to be received by HUD by the 

application deadline date. Applicants 

using delivery services other than DHL, 

FedEx, or UPS do so at their own risk 

as HUD cannot guarantee delivery due 

to its Security procedures. Proof of 

timely submission to HUD field offices 

will be the Certificate of Mailing (USPS 

Form 3817) or electronic receipt 

showing the date, time and location of 

the U.S. Postal Facility or receipts from 

the delivery service consistent with the 

information provided above. 

Please remember that mail to federal 

facilities is screened and irradiated prior 

to delivery, a process that can take 

several days. Please allow ample time 

for your package to be delivered. If an 

application does not meet the filing 

requirements it will not receive funding 

consideration. If you mail your 

application to the wrong location and 

the office designated for receipt in 

accordance with these submission 

requirements does not receive it, your 

application will be considered late and 

not be considered for funding. HUD will 

not be responsible for directing it to the 

appropriate office. 

You, the applicant, must submit a 

complete Section 108 application and 

the required number of copies to the 

locations identified in this Program 

NOFA. Address and labeling 

requirements are listed directly below in 

Section IV.F.3.d. 

d. Address for Submitting Concurrent 

Section 108 Applications to HUD 

Headquarters. Submit the concurrent 

Section 108 application to: HUD 

Headquarters; Robert C. Weaver Federal 

Building; 451 Seventh Street, SW., 

Room 7251; Washington, DC 20410, 

Attention: BEDI/Section 108 

Application. 

When submitting the concurrent 

Section 108 application, please specify 

BEDI/Section 108 Application on any 

label or mailing container, and include 

the applicant’s name, mailing address 

(including zip code), street address (if 

different from mailing address), and zip 

code, and voice and facsimile telephone 

numbers (including area code), along 

with the contact person’s name, and 

voice and facsimile telephone numbers 

(including area code), and e-mail 

address, if available. 

e. Concurrent Section 108 

Applications to HUD Field Offices. At 

the same time the concurrent Section 

108 application is submitted to HUD 

Headquarters, an additional copy 

should be submitted to the Community 

Planning and Development Division of 

the appropriate HUD field office for the 

applicant’s jurisdiction. A listing of CPD 

Offices and mailing addresses can be 

found on HUD’s Web site at http:// 

www.hud.gov/offices/cpd/about/staff/ 

fodirectors/. 

V. Application Review Information 

A. Criteria 

1. Factors for Award Used to Evaluate 

and Rate Applications 

a. Response to Factors for Award. The 

applicant must provide in narrative 

form responses to each of the rating 

factors below. HUD will evaluate all 

applications for funding assistance 

based on the following factors, the 

responses to which demonstrate the 

quality of the proposed project or 

activities, and the applicant’s capacity 

and commitment to use the BEDI funds 

in accordance with the purposes of the 

Act. As part of the application review, 

HUD reserves the right to contact its 

local field offices for the purpose of 

verifying information submitted by the 

applicant. 

b. Responses to Rating Factors 1–5. 

Responses to Rating Factors 1–5 below 

shall not exceed 15 double-spaced, 81⁄2

x 11 inch single-sided pages, with oneinch margins on all sides, for all 

responses. 

2. Rating Factors for Award 

a. Rating Factor 1: Capacity of the 

Applicant and Relevant Organizational 

Experience (20 Points Maximum) 

This Factor addresses the extent to 

which the applicant has the 

organizational resources necessary to 

successfully implement the proposed 

activities in a timely manner. The rating 

of the applicant will include any 

subcontractors, consultants, and subrecipients that are firmly committed to 

participate in the activities described in 


rfrederick on PROD1PC67 with NOTICES2
54332 Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 

the application. In responding to 

subfactors (1) and (2) of this Factor, 

applications that merely summarize the 

amount of funds received, spent, or 

managed will receive fewer points than 

those providing specific measurable 

information on program activities 

undertaken, outcomes of these activities 

and their accomplishments. In rating 

this Factor, HUD will consider the 

following: 

(1) Applicant Capacity (Up to 10 

points). The applicant should 

demonstrate that it has the organization, 

the staff, and the financial resources in 

place to implement the specific steps 

required to successfully carry out its 

proposed BEDI/Section 108 project. The 

applicant should offer evidence of this 

capacity through a description that 

includes: 

(a) Performance in the administration 

of its CDBG, HOME, or other HUD 

programs, including a description of 

successfully completed projects and 

other outcomes or accomplishments 

under these programs. In addition to 

citing specific projects, outcomes, or 

accomplishments, CDBG entitlement 

recipients must also indicate the extent 

to which the applicant has met the HUD 

standard that the total amount of its 

undisbursed entitlement grant funds 

may not be more than 1.5 times the 

entitlement grant amount for the current 

program year (see 24 CFR 

570.902(a)(1)(i)). All applicants must 

also identify any unresolved monitoring 

or audit findings by HUD with respect 

to the applicant’s administration of 

HUD programs. 

(b) Performance, if any, in carrying 

out economic development projects 

similar to that proposed, including 

brownfields economic development or 

redevelopment projects, if any, and if 

applicable, the ability to conduct 

prudent underwriting; 

(c) If an applicant has received a 

federal Renewal Community/ 

Empowerment Zone/Enterprise 

Community designation (including 

Enhanced Enterprise Community (EEC) 

designation), it must provide 

information on the status of its capacity 

to achieve state and local commitments 

identified in its local implementation 

plan, including maximizing the federal 

tax benefits made available. Applicants 

that have been designated as a Renewal 

Community (RC), Empowerment Zone 

(EZ), or Enterprise Community (EC/EEC) 

must respond to this subfactor even if 

the proposed brownfields economic 

development project is not to be located 

within the boundaries of the designated 

RC/EZ/EC–II; and 

(d) An applicant that has previously 

received a BEDI or a competitive EDI 

grant award or, within the past five 

years, a Section 108-guaranteed loan 

commitment, must describe the status of 

the implementation of those project(s) 

assisted with any BEDI or competitive 

EDI funds or with any Section 108- 

guaranteed loan funds so approved 

within the last five years. An applicant 

must address any delays that have been 

encountered and the actions it is taking 

to overcome any such delays in carrying 

out the project(s) in a timely manner. 

If HUD has not applied the 

performance standard applicable to all 

previous BEDI grantees referenced in 

Section III.C.1.c., then for any such 

previously funded BEDI or competitive 

EDI grant projects, or for those Section 

108-guaranteed loan projects committed 

within the past five years, HUD will 

award more rating points for 

applications providing evidence of 

achievement of specific measurable 

outcomes in carrying out approved 

activities funded with such guaranteed 

loan or grant funds. 

If any of the rating criteria listed 

under (a) through (d) above do not apply 

to an application, the rating for this 

subfactor (1) shall be based solely upon 

the other applicable criteria. If the 

applicant has no prior relevant 

experience, the rating for this Factor 

shall be based on the capacity of its 

partner(s), if any, as stated below. 

(2) Partner Capacity (Up to 10 points). 

In response to this subfactor (2), the 

applicant should describe the 

experience and performance of 

subrecipients, private developers and 

other businesses, nonprofit 

organizations (including grassroots, 

faith-based and other community-based 

organizations), and other entities, if any, 

that have a role in implementing the 

proposed BEDI/108 program. Applicants 

are encouraged to identify specific 

economic development or other projects 

undertaken by each entity, which reflect 

the capacity of each entity to fulfill its 

responsibilities under the proposed 

brownfields economic development 

project, including the location, scale, 

and timeframe for completion of other 

relevant projects. If there are no third 

parties participating with the applicant 

in the proposed project, the 10 points 

available under this subfactor (2) will be 

added to the 10 points available under 

subfactor (1), with a maximum of 20 

possible points then available under 

subfactor (1). 

Experience will be judged in terms of 

recent (i.e., within the past 5 years) and 

successful performance of activities 

relevant to those proposed in the BEDI 

application. The more recent and 

extensive the positive experience, the 

greater the number of points that will be 

awarded for this Factor. 

In addition to the application, HUD 

also may rely on information at hand or 

available from public sources such as 

newspapers, from performance and/or 

monitoring reports, Inspector General or 

Government Accounting Office reports 

or findings, hotline complaints that 

have been proven to have merit, audit 

reports, and other reliable public 

information in rating this Factor. 

b. Rating Factor 2: Distress/Extent of the 

Problem (15 Points Maximum) 

This Factor addresses the extent to 

which there is need for funding the 

proposed activities based on levels of 

distress in both the jurisdiction of the 

public entity that is the applicant and 

the geographic or target area that will 

benefit from the project. Applications 

will be evaluated on the extent to which 

the level of distress for the target area is 

documented and compared with 

national data and data for the 

jurisdiction. 

In applying this Factor, HUD will 

consider current levels of distress in the 

target area, as defined in standard 

geographic terms by the applicant. This 

may be Census Tract(s) or Block Groups 

immediately surrounding the project 

site up to a radius of one-half mile, or 

it may be the target area to be served by 

the proposed project. HUD will also 

consider the current levels of distress in 

the applicant public entity’s 

jurisdiction, if different from the target 

area. The applicant should describe the 

nature of the distress that the project is 

designed to address and the rationale for 

its definition of the area to be benefited. 

Examples of project beneficiaries may 

include: a) those receiving or using 

products or services produced by the 

project, and b) those employed by the 

project. 

Notwithstanding the above, an 

applicant proposing a project to be 

located outside the applicant’s 

jurisdiction or the target area for which 

benefits is claimed could still receive 

points under this Factor if a clear 

rationale is provided linking the 

proposed project location and the 

benefits to be derived by persons living 

in the target area or the applicant 

jurisdiction. 

To the extent that the applicant’s 

Consolidated Plan, its Analysis of 

Impediments to Fair Housing choice 

(AI), and/or its Anti-Poverty Strategy 

found therein identify the level of 

distress in the jurisdiction and the target 

area in which the project is to be carried 

out, references to such documents 

should be included in preparing the 

response to this Factor. Applications 


rfrederick on PROD1PC67 with NOTICES2
Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 54333 

that fail to reference these sources will 

receive fewer points under this Factor. 

Applicants should provide data that 

address the following specific indicators 

of distress: 

(1) Poverty Rate (Up to 6 points). Data 

should be provided in both absolute and 

percentage form (i.e., whole numbers 

and percents) for both the target area 

and the applicant’s jurisdiction as a 

whole; an application that compares the 

local poverty rate in the following 

manner to the national average at the 

time of submission will receive points 

under this section as follows: 

(a) A poverty rate in the target area 

that is less than the national average, 

but that is greater than the rate for the 

applicant’s jurisdiction, (2 points); 

(b) A poverty rate in the target area 

that is at least equal to, but less than 

twice, the national average, (4 points); 

(c) A poverty rate in the target area 

that is twice or more than the national 

average, (6 points). 

(2) Unemployment Rate (Up to 3 

points). An application that compares 

the local unemployment rate for the 

applicant’s jurisdiction and the target 

area in the following manner to the 

national average at the time of 

submission will receive points under 

this subfactor as follows: 

(a) An unemployment rate in the 

target area that is less than the national 

average, but that is greater than the rate 

for the applicant’s jurisdiction, (1 

point); 

(b) An unemployment rate in the 

target area that is at least equal to, but 

less than twice, the national average, (2 

points); 

(c) An unemployment rate in the 

target area that is twice or more than the 

national average, (3 points). 

(3) Other Indicators of Social and/or 

Economic Decline (Up to 6 points). 

Applicants should provide other 

indicators of social or economic decline 

that best capture the applicant’s local 

situation. Examples that could be 

provided under this section include 

information demonstrating the target 

area and the jurisdiction’s stagnant or 

falling tax base, including recent (within 

the last three years) commercial or 

industrial closings, downturns or 

layoffs; housing conditions, such as the 

number and percentage of substandard 

and/or overcrowded units; rent burden 

(defined as average housing cost divided 

by average income) for both the target 

area and jurisdiction; local crime 

statistics. The response to this subfactor 

(3) should paint a picture of the extent 

of need and distress in the target area 

and jurisdiction. 

HUD requires use of sound and 

reliable data (e.g., U.S. Census data, 

state statistical reports, university 

studies/reports that are verifiable) to 

support distress levels cited in each 

application. A source for all information 

along with the publication or 

origination date must also be provided. 

Updated Census data are available as 

follows for the listed indicators: 

Unemployment rate: Unemployment 

rates are estimated monthly for 

counties, with a two-month lag by the 

Bureau of Labor Statistics, while census 

tract unemployment rates are available 

through the 2000 U.S. Census; 

Poverty rate: Poverty rates are 

provided through the 2000 U.S. Census 

and are estimated every two years, with 

a three-year lag. Census and other 

relevant data can be accessed through 

http://www.ffiec.gov/. In rating 

applications under this Factor, HUD 

reserves the right to consider sources of 

available objective data other than, or in 

addition to, those provided by 

applicants, in order to compare such 

data to those provided by applicants. 

c. Rating Factor 3: Soundness of 

Approach (35 Points Maximum) 

This Factor addresses the quality and 

cost-effectiveness of the proposed plan 

for the brownfields economic 

development project. Applications that 

do not propose the productive reuse of 

a specific, identified site or sites and 

that do not result in near-term, 

measurable economic benefits, such as 

projects that involve only the 

preparation of a site for potential future 

reuse by an unidentified party, or the 

capitalization of a loan pool for loans to 

unidentified borrowers, will receive 

fewer points under this Factor. The 

relationship between the proposed site 

or sites, the proposed eligible activities 

and the community needs and purposes 

of the program funding must be clearly 

described, as set forth below, in order to 

receive points for this Factor. In rating 

this Factor, HUD will consider the 

following: 

(1) Consistency/Appropriateness of 

Proposed Activities with Identified 

Needs (Up to 3 points). In response to 

this subfactor, the applicant should 

describe: 

(a) The extent to which the proposed 

plan for use of BEDI grant/Section 108- 

guaranteed loan funds will address the 

needs described in Rating Factor 2 

above regarding the distress and extent 

of the problem in the target area or area 

to be benefited and the long-term benefit 

for current residents of the target area. 

The applicant should provide a clear 

and quantified explanation of this 

relationship; 

(b) Any unmet needs identified in the 

jurisdiction’s Consolidated Plan and 

pursuant to Section III.C.4.(i) of this 

NOFA, any impediments to fair housing 

identified in the jurisdiction’s Analysis 

of Impediments to Fair Housing Choice, 

that will be directly addressed by the 

proposed project. See Section III.C.4.(i) 

of this NOFA for examples of general 

affirmative fair housing actions that may 

be undertaken to address a jurisdiction’s 

Analysis of Impediments to Fair 

Housing Choice; and 

(c) The activities that will be carried 

out with the BEDI grant funds, and the 

nature and extent of the brownfields 

problem(s) actually or potentially 

affecting the site and/or structure(s) 

already on the site. This response must 

also indicate that the proposed 

assistance will not be used to provide 

funding to parties to remediate 

conditions caused by their own actions 

for which they have been determined to 

be legally responsible, and that the 

proposed brownfields site is not 

ineligible, as provided in Section IV.E.3. 

of this NOFA. This information relates 

to a threshold factor as well as a rating 

factor, as described in Section III.C.2. of 

this NOFA. Applications that fail to 

respond satisfactorily to this subfactor 

(c) shall not receive funding 

consideration. 

(2) Eligible Activities and CDBG 

National Objectives (Up to 8 points). 

The applicant must describe how the 

proposed uses of BEDI funds will 

qualify as eligible activities under 24 

CFR 570.703 governing the Section 108- 

guaranteed loan program, and also will 

meet the National Objectives of the 

CDBG program under 24 CFR 570.208. 

In describing how the proposed uses 

will meet the National Objectives of the 

CDBG program and the activity 

eligibility requirements of the Section 

108 program, applications must also 

include citations to the specific 

regulatory subsections supporting 

eligibility of activities and compliance 

with National Objectives. (See Section 

III.C.1. of this NOFA). This information 

relates to a threshold factor as well as 

a rating factor, as described in Section 

III.C.1. of this NOFA. Applications that 

fail to respond satisfactorily to this 

subfactor (2) shall not receive funding 

consideration. 

(3) Project Readiness (12 points 

overall, with (a)–(d) worth up to 10 

points collectively, and (e) up to 2 

points). In responding to this subfactor 

(3), the applicant should demonstrate 

the extent to which the redevelopment 

plan for the brownfields site is logical, 

feasible, and likely to achieve its stated 

purpose and the extent to which the 

project will directly result in the 

productive reuse of the site and the 

delivery of near-term, measurable 


rfrederick on PROD1PC67 with NOTICES2
54334 Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 

economic benefits. The applicant’s 

response should demonstrate the extent 

to which the project is likely to be 

completed within a maximum of five 

years from the date of the BEDI award 

and will produce near-term, measurable 

economic benefits. Points for this 

subfactor will be awarded based upon 

the extent to which the following 

critical benchmarks for the 

redevelopment plan have been met or 

are approaching completion. 

(a) Environmental Investigation. This 

subfactor (a) will consider the extent to 

which the presence or potential 

presence of environmental 

contamination of the project site is 

known or understood. Proposed projects 

on sites where the nature and degree of 

environmental contamination is not 

well-quantified, where no 

environmental investigation has 

commenced, or that are the subject of 

on-going litigation or environmental 

enforcement actions will receive fewer 

points under this subfactor (a). 

Similarly, fewer points will be awarded 

to proposed projects at sites with 

exceptionally expensive contamination 

problems that may be beyond the scope 

of the BEDI and Section 108 programs’

financial resources or other resources 

firmly committed to the project as 

described in the application, and sites 

subject to pending and current litigation 

that may not be available for 

remediation and development or 

redevelopment in a time frame that will 

produce near-term and measurable 

economic benefits through the use of 

BEDI and Section 108 funds. 

Alternatively, any applicant indicating 

the completion of environmental 

assessment or review and the issuance 

of HUD approval for a Request for 

Release of Funds for the project under 

24 CFR part 58 will receive more points 

under this subfactor. 

(b) Site Control. This subfactor (b) 

will consider the extent to which 

control of the proposed project site has 

been secured or is being sought. Points 

for this subfactor (b) will be awarded 

based upon the degree of site control 

secured by the applicant or its 

development partner. Projects, for 

instance, in which negotiation or 

litigation related to site control are 

underway or continuing are eligible, but 

will receive fewer points than projects 

in which an option to purchase has been 

secured. Projects in which the applicant 

or its development partner has secured 

site control through acquisition, longterm lease, eminent domain or other 

means at the time of application will 

receive full points under this subfactor 

(b). In responding to this subfactor (b), 

applicants are encouraged to accompany 

their narrative response with a map 

indicating the boundaries of the 

proposed site or sites on which BEDIassisted improvements are proposed. 

Any map included as part of the 

application must be submitted in 

accordance with the submission 

procedures provided for in the General 

Section and will not be counted in the 

fifteen page limitation on the narrative 

response to the Rating Factors as 

provided in Section V.A.1.b. of this 

NOFA. 

(c) Legislative, Regulatory, and Other 

Approvals. This subfactor (c) will 

consider the extent to which any 

required local legislative approvals, 

regulatory permits, zoning 

classifications, environmental 

regulatory approvals, waivers, general 

and special use permits, assessment 

district designations, public easements 

or rights-of-way, or other similar 

approvals have been secured or are 

being sought. The greater the number of 

outstanding legislative, regulatory, or 

other approvals required and not yet 

secured, the fewer points will be 

awarded. In the case of a CDBG 

entitlement unit of general local 

government, such as a county, 

proposing to undertake a BEDI project 

within the jurisdiction of another CDBG 

entitlement unit of general local 

government, such as a city or other 

jurisdiction within that county, the 

applicant should also include a letter of 

support from the jurisdiction in which 

the BEDI project would be located. 

(d) User Agreements. This subfactor 

(d) will consider the extent to which 

any development agreements, tenant 

leases, memoranda of understanding, or 

other agreements integral to returning 

the site to productive use and producing 

near-term measurable economic 

benefits, have been secured or are being 

sought. Applicants proposing projects 

that do not provide for new investment 

by an identified, committed private 

entity and the return of a brownfields 

site to productive use, with 

accompanying near-term, measurable 

economic benefits, will receive fewer 

points under this subfactor (d). 

(e) Delivery of Economic Benefits. The 

response to this subfactor (e) must 

include the time frame in which the 

measurable economic benefits are to be 

delivered. For multi-phase projects, the 

response to this subfactor (e) must 

clearly delineate the different phases of 

the project and indicate whether or not 

they are to be funded by BEDI/Section 

108 funds. Brownfields economic 

development projects that provide nearterm, measurable economic benefits 

directly through the creation or 

retention of jobs will receive a greater 

number of points under this subfactor 

(e). 

(1) Timeframe for Delivery of 

Economic Benefits. In response to this 

subfactor (3), the applicant should also 

provide a specific schedule (with both 

beginning and end dates) for carrying 

out the project and identify all interim 

measurable benchmarks (acquisition, 

demolition, site improvements, 

relocation, construction, provision of 

jobs mandated under Section 3, as 

described in (2) below, etc.) to be 

accomplished. The applicant should 

also include a proposed schedule for 

drawing down all funds necessary to 

complete the project, including BEDI 

and Section 108 funds. 

(2) Intent to Meet Section 3 

Requirements. To the extent possible, 

applicants must ensure that training, 

employment, and other economic 

opportunities will be directed to lowand very-low income persons, 

particularly those who are recipients of 

government assistance for housing, and 

business concerns that provide 

economic opportunities to low- and 

very low-income persons, as required 

under Section 3 of the Housing and 

Urban Development Act of 1968, 12 

U.S.C. 1701u (Economic Opportunities 

for Low- and Very Low-Income 

Persons). 

(4) Section 108 Application (Up to 2 

points). BEDI applications accompanied 

by a request for new Section 108 Loan 

Guarantee assistance as evidenced by a 

full and complete Section 108 

application as provided for in 24 CFR 

570.704, and submitted concurrently 

under separate cover as provided for in 

Section IV.F.3. of the NOFA, will 

receive up to two points for this 

subfactor (4). BEDI applications 

accompanied by a request to use the 

BEDI grant award in conjunction with a 

currently pending but unapproved 

Section 108 loan guarantee application 

(together with any amendments needed 

for consistency with the BEDI 

application) for the same project 

described in the BEDI application, will 

also receive up to two points under this 

subfactor (4). 

(5) Financial Feasibility/Need (Up to 

10 points). The applicant should 

demonstrate the economic necessity of 

the proposed BEDI and Section 108 

funds and the extent to which the 

project is not financially feasible in the 

absence of such funds. In responding to 

this subfactor (5), applicants are 

encouraged to accompany their 

narrative response, as appropriate, with 

development and operating ‘‘pro 

formas’’ or similar analyses of the 

proposed project financing. Such pro 

forma or other financial analysis will 


rfrederick on PROD1PC67 with NOTICES2
Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 54335 

not be counted in the fifteen page 

limitation on the narrative response to 

the Rating Factors as provided in 

Section V.A.1.b. of this NOFA. In the 

narrative response, applicants must 

clearly address the question of why the 

BEDI funds are critical to the success of 

this project by providing the following 

items: 

(a) Use of BEDI and Section 108 

Funds to Fill Financing Gaps. The 

applicant must provide an economic 

rationale that demonstrates how the use 

of the BEDI and Section 108 funds will 

directly impact the financial feasibility 

of the proposed project. The response 

should discuss the critical gaps that 

exist in financing the proposed project, 

why those gaps exist and how the BEDI 

and Section 108 funds will be used to 

fill those gaps. The narrative response, 

including any pro forma or similar 

analysis, should demonstrate how the 

proposed BEDI and Section 108 

financing will yield economic benefits 

critical to the success of the project, 

including, for example, increased rates 

of return or debt coverage ratios, 

reduced rents or other similar financial 

outcomes necessary to attract private 

investment. 

(b) Project Costs and Financial 

Requirements. A funding sources and 

uses statement must also be provided 

that specifies the source of funds for 

each identified use or activity (Exhibit 

C of form HUD–40123), along with the 

derivation of project costs. 

d. Rating Factor 4: Leveraging Resources 

(15 Points Maximum) 

In evaluating this Factor, HUD will 

consider the extent to which the 

response demonstrates the likelihood 

that the project will leverage both 

Section 108 loan and other public or 

private funds as part of the total project 

resources. Points for this Factor will be 

awarded in two parts, for the following: 

(1) Leverage of Section 108 funds (Up 

to 8 points). 

The minimum ratio of Section 108 

funds to BEDI funds in any project may 

not be less than 1:1. Points will be 

awarded based upon the extent to which 

the proposed project leverages an 

amount of Section 108 funds greater 

than a 1:1 ratio. If the application has a 

ratio of 1:1, it will not receive any 

points under this subfactor. The higher 

the ratio of additional new Section 108 

funds to BEDI funds proposed in an 

application, the more points it will 

receive under this subfactor. (See 

Sections II.C.1. and Section VI.B.1.a. of 

this NOFA regarding the conditioning of 

BEDI awards on achievement of a 

specific BEDI/Section 108 leveraging 

ratio.) 

(2) Leverage of Other Financial 

Resources (Up to 7 points). 

HUD will evaluate the extent to which 

other funds (public or private) are 

leveraged by BEDI grant funds, and the 

extent to which such other funds are 

firmly committed to the project. This 

could include the use of CDBG funds, 

other federal or state grants or loans, 

local government general funds, project 

equity or commercial financing 

provided by private sources or funds 

from nonprofit organizations or other 

sources. In order to receive points for 

other public and privately committed 

funds under this subfactor (2), letters of 

firm commitment, evidence of financial 

capacity and, for CDBG funds, the 

resolution of the local governing body, 

must be submitted for the proposed 

BEDI project in accordance with the 

submission procedures for third party 

documents provided in Section IV.B.3.c. 

of the General Section. In addition: 

(a) Applicants must provide evidence 

that there is a firm commitment for such 

funds as defined in Section I.C. of this 

NOFA. 

(b) If a commitment is to be selffinanced, such as a commitment by a 

private developer to provide a specified 

amount of equity investment in the 

project, the party making that 

commitment must evidence its financial 

capacity through the submission of a 

corporate or personal financial 

statement or other appropriate means in 

order to receive points under this 

subfactor (2). 

(c) For Applicants Committing CDBG 

Funds: In order for an applicant’s 

commitment of CDBG funds to be 

accepted by HUD as additional 

financing for a BEDI project, a 

resolution from the local governing 

body (e.g., city/borough council) 

authorizing the amount and permitted 

uses of the funds must be provided. 

All such funds may also be committed 

subject to completion of a satisfactory 

environmental review required under 24 

CFR part 58 for the project for purposes 

of this section. 

e. Rating Factor 5: Achieving Results 

and Program Evaluation (15 Points 

Maximum) 

This Factor emphasizes HUD’s 

commitment to ensuring that applicants 

maintain commitments made in their 

applications and assess their 

performance to ensure that performance 

goals are met. This Factor also evaluates 

the extent to which the results of the 

proposed BEDI project will address the 

policy priorities of the Department. In 

addition to a narrative response, 

applicants must complete the logic 

model provided in the instruction 

download on Grants.gov (form HUD–

96010) in order to receive points under 

this Factor. Applicants seeking policy 

priority points for the removal of 

regulatory barriers to affordable housing 

as provided for in subfactor (2)(e) of this 

Factor, must also complete form HUD–

27300. 

(1) Performance Measurement Plan 

(Up to 12 points). HUD requires 

applicants to develop an effective, 

quantifiable, outcome oriented 

performance measurement plan for 

assessing performance and determining 

that BEDI project goals have been met. 

The applicant’s response to this 

subfactor (1) should identify: (a) Each of 

the specific project outcomes for the 

proposed BEDI project; (b) all interim 

benchmarks or outputs of the project 

and the associated time frames for 

meeting each interim benchmark or 

output, i.e., the near-term measurable 

economic benefits to be achieved, such 

as the number of jobs created or retained 

and the time frame for creation or 

retention; and (c) the performance 

indicators selected by the applicant to 

measure its achievement of the 

identified project outputs and project 

outcomes. The performance indicators 

selected by the applicant should be 

objectively quantifiable and measure 

actual achievements against anticipated 

results. The response to this subfactor 

(1) should identify what will be 

measured, how it will be measured, and 

the procedures or plans that are in place 

to make adjustments to the project 

redevelopment plan if performance 

targets are not met within established 

time frames. 

In response to this subfactor (1), 

applicants should address any of the 

applicable outcomes or ultimate goals 

identified for the BEDI project. 

Examples of such outcomes or goals 

include increased property values, or 

home sales prices, as a result of a series 

of coordinated neighborhood activities; 

the amount of increased wages resulting 

from the creation or retention of jobs; 

increased business sales volume in 

revitalized neighborhoods; or the 

amount of any increased land value that 

results from the BEDI project. 

Applicants should propose quantifiable 

outcomes or goals related to the benefits 

expected for the neighborhood or for 

persons assisted, as part of the 

evaluation plan. The completed logic 

model must be incorporated into the 

Evaluation Plan and be consistent with 

performance goals contained in the 

plan. 

(2) Policy Priorities (Up to 3 points). 

The applicant’s response to this 

subfactor (2) should address how the 

project will address any of the following 


rfrederick on PROD1PC67 with NOTICES2
54336 Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 

policy priorities of the Department, as 

further detailed in Section V.B. of the 

General Section. A maximum of three 

points shall be awarded to applicants 

that demonstrate how the proposed 

BEDI project addresses two or more of 

the following policy priorities, with the 

number of points afforded to each 

policy priority indicated below: 

(a) The extent to which the proposed 

project will improve the quality of life 

in the nation’s communities, by bringing 

private capital to distressed 

communities (1 point); 

(b) The extent to which the proposed 

project will finance business 

investments that will grow new 

businesses or maintain and expand 

existing businesses (1 point); 

(c) The extent to which the proposed 

project will create decent jobs for lowincome persons (1 point). 

(d) The extent to which the project 

will increase affordable housing and 

homeownership opportunities in 

environmentally healthy and revitalized 

neighborhoods for low- and moderateincome persons, persons with a 

disability, the elderly, minorities, and 

persons with limited English 

proficiency (1 point); 

(e) The extent to which the project 

will assist in breaking down regulatory 

barriers that impede the availability of 

affordable housing, accompanied by 

form HUD–27300. To receive points for 

this factor the applicant must submit the 

required documentation or reference to 

a URL(s) where the information can be 

found. (up to 2 points); and, 

(f) The extent to which the project 

will utilize energy-efficient solutions in 

the design or operating phases, 

including the purchase and use of 

Energy Star-labeled products and/or 

combined heat and power (CHP, or 

cogeneration) in buildings, where 

applicable. (See Section V.B of the 

General Section, Promoting Energy 

Efficiency and Adopting Energy Star, for 

more information. (1 point). 

3. Bonus Points 

An application may receive a 

maximum of four bonus points. Two 

bonus points may be awarded for each 

of the following: 

a. HUD will award two bonus points 

to each application that includes a valid 

form HUD–2990 certifying that the 

proposed activities/projects in the 

application are consistent with the 

strategic plan for an empowerment zone 

(EZ) designated by HUD or the United 

States Department of Agriculture 

(USDA), the tax incentive utilization 

plan for an urban or rural renewal 

community designated by HUD (RC), or 

the strategic plan for an enterprise 

community designated in Round II by 

USDA (EC–II), and that the proposed 

activities/projects will be located within 

the RC/EZ/EC–II mentioned above and 

are intended to serve the residents of the 

Zone. A listing of the RC/EZ/EC–IIs is 

available on the Internet at http:// 

www.hud.gov/cr; 

b. Two bonus points will also be 

awarded for projects that are located in 

Brownfields Showcase Communities 

designated by EPA. A list of the 

federally designated Brownfields 

Showcase Communities is available 

from the SuperNOFA Information 

Center or through the HUD Web site, 

http://www.hud.gov/offices/adm/grants/ 

otherhud.cfm. 

B. Reviews and Selection Process 

1. Reviews and Selection Process. All 

applications meeting BEDI program and 

other threshold requirements will be 

rated under the selection criteria in 

Section V.A. of this NOFA. Applications 

will be selected for funding as follows: 

a. Fundable BEDI grant applications 

must meet the program threshold and 

submission requirements of this NOFA 

and the other threshold requirements 

stipulated in Section III.C. of the 

General Section or they will not be 

ranked. 

b. All BEDI grant applications that 

meet threshold requirements will be 

ranked separately in order of points 

assigned with the applications receiving 

more points ranked above those 

receiving fewer points. 

c. In the event two or more 

applications are given the same score, 

but there are insufficient funds to fund 

all of the tied applications, the 

application(s) with the highest score(s) 

on Rating Factor 3 shall be selected. If 

there is still a tie, the following Factors 

will be considered sequentially, with 

the application having the high score on 

each Factor in the following order 

taking precedence until the tie is 

broken: Rating Factor 1, Rating Factor 2, 

Rating Factor 4, and Rating Factor 5. 

d. Fundable BEDI applications will be 

funded in rank order until the total 

aggregate amount of the approvable 

applications funded is equal to the 

maximum amount available in the 

competition (subject to the limitations 

described in Section II.C. above). 

2. Corrections to Deficient 

Applications. Section V.B. of the 

General Section provides the procedures 

for corrections to deficient applications. 

C. Anticipated Announcement and 

Award Dates 

Historically, BEDI awardees have 

been notified of the approval of BEDI 

applications within approximately 90 

days of the application deadline. 

VI. Award Administration Information 

A. Award Notices 

1. Notice of Award and Obligation. 

BEDI award recipients will receive 

written notice of approval of their 

applications and the related terms and 

conditions of the award. An authorized 

official of the applicant receiving a BEDI 

award will be required to sign and 

return an acceptance of the BEDI award. 

BEDI funds shall be obligated for an 

approved application upon the return of 

a signed acceptance of the award to 

HUD and a countersignature of that 

acceptance by an authorized HUD 

official. 

2. Award Disbursements and 

Amendments. 

a. Timing of Section 108 Approval 

and BEDI Grant Disbursements. 

(1) To the extent a full and complete 

Section 108 application is submitted 

with the BEDI grant application, HUD 

will evaluate the Section 108 

application immediately following the 

competition for BEDI grant funds. Note 

that for those applicants that are granted 

a waiver to the electronic submission 

process, the 108 application must be 

submitted to the appropriate HUD field 

office concurrently with submission to 

Headquarters. 

(2) Notwithstanding any earlier 

obligation or award of BEDI funds to a 

grantee, or execution of a grant 

agreement, HUD will not permit the 

grantee to draw down BEDI funds before 

the issuance and at least partial funding 

of the obligations evidencing the related 

Section 108-guaranteed loan. 

(3) Pursuant to the Revised 

Continuing Appropriations Resolution, 

2007 (Pub. L. 110–5), (under the 

‘‘Brownfields Redevelopment’’ heading) 

and 31 U.S.C. 1552, FY2007 BEDI funds 

must be obligated (i.e., awarded) by 

HUD by September 30, 2008, and must 

be disbursed by HUD to the grantee by 

September 30, 2013. HUD reserves the 

right, however, to require earlier 

disbursement under a BEDI grant 

agreement. Accordingly, a BEDI 

awardee must ensure the timely 

submission of its Section 108 Loan 

Guarantee application, the execution of 

the Section 108 Contract for Loan 

Guarantee Assistance and BEDI Grant 

Agreement, and the issuance of the 

Section 108 Loan Guarantee Note. 

3. Applicant Debriefing. Section 

VI.A.5. of the General Section provides 

information on applicant requests for a 

debriefing. Applicants requesting to be 

debriefed must send a written request to 

the contact person for the BEDI 


rfrederick on PROD1PC67 with NOTICES2
Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 54337 

program, Mr. David Kaminsky, at the 

address listed in Section VII of this 

NOFA. 

B. Administrative and National Policy 

Requirements 

1. Terms and Conditions. a. Ratio of 

BEDI to Section 108 Loan Guarantee 

Funds. Because the proposed ratio of 

BEDI funds to Section 108 funds 

presented in an approved BEDI 

application represents an applicant’s 

financial commitment to a BEDI project, 

HUD will condition the BEDI grant 

award on the grantee’s achievement of 

that specific ratio. The failure of the 

grantee to meet that condition by 

obtaining timely HUD approval of a 

commitment for, and issuance of, the 

required Section 108 guaranteed 

obligations ratio may result in the 

cancellation and recapture of all or a 

proportionate share of the BEDI grant 

award. 

b. Approval of Section 108 Loan 

Guarantee Application and 

Disbursement of Funds. As a condition 

of any award under this NOFA, if the 

related Section 108 application has not 

been submitted within 60 days and 

approved within 10 months of written 

HUD notification of selection for 

potential funding under this NOFA, 

HUD may deobligate the BEDI funds. 

BEDI grant awards and grant agreements 

will contain conditions requiring 

grantees to adhere to time frames 

mutually agreed on by the applicant/ 

grantee and HUD for implementing 

proposed projects and drawing Section 

108 and BEDI funds. If BEDI grant funds 

and Section 108 loan proceeds are not 

disbursed to the applicant within the 

timeframes specified in the BEDI grant 

agreement, HUD reserves the right to 

cancel the award and recapture all or a 

portion of the BEDI funds, as applicable 

under the grant agreement. 

c. BEDI Application Amendments. 

Any modifications or amendments to an 

application approved pursuant to this 

NOFA, whether requested by the 

applicant or by HUD, must be within 

the scope of the approved original BEDI 

application in all respects material to 

rating the application, unless HUD 

determines that the revised application 

remains within the competitive range 

and is otherwise approvable under this 

NOFA. In addition, if the applicant 

proposes an amendment after the period 

during which appropriated funds are 

available for obligation (for FY2007 

BEDI funds, after September 30, 2008), 

HUD will be unable to approve any 

amendment which materially changes 

the scope, purpose, or need for the 

original award, as determined by HUD. 

In such a case, the unused BEDI funds 

must be deobligated and returned to the 

U.S. Treasury. 

2. Environmental Justice. a. Executive 

Order 12898 (Federal Actions to 

Address Environmental Justice in 

Minority Populations and Low-Income 

Populations) directs federal agencies to 

develop strategies to address 

environmental justice. Environmental 

justice seeks to rectify the 

disproportionately high burden of 

environmental pollution that is often 

borne by low-income, minority, and 

other disadvantaged communities, and 

to ensure community involvement in 

policies and programs addressing this 

issue. 

b. HUD expects that projects 

presented for BEDI funding will 

integrate environmental justice concerns 

and provide measurable economic 

benefits for affected communities and 

their current residents for the long term. 

3. Economic Opportunities for Lowand Very Low-Income Persons (Section 

3). Recipients of assistance under this 

NOFA must comply with Section 3 of 

the Housing and Urban Development 

Act of 1968, 12 U.S.C. 1701u (Economic 

Opportunities for Low- and Very LowIncome Persons in Connection with 

Assisted Projects) and the HUD 

regulations at 24 CFR part 135, 

including the reporting requirements at 

subpart E. Section 3 requires recipients 

to ensure that, to the greatest extent 

feasible, training, employment, and 

other economic opportunities will be 

directed to low- and very-low income 

persons, particularly those who are 

recipients of government assistance for 

housing, and business concerns that 

provide economic opportunities to lowand very low-income persons. 

4. Other National Requirements. BEDI 

applicants are directed to the Section 

III.C. of the General Section, which 

provides the statutory, regulatory, 

threshold, and public policy 

requirements applicable to all HUD 

grantees. In particular, BEDI applicants 

should carefully review provisions 

relating to Executive Order 13202 

(Preservation of Open Competition and 

Government Neutrality Toward 

Government Contractors’ Labor 

Relations on Federal and Federally 

Funded Construction Projects) and 

federal laws governing the procurement 

of recovered materials. 

C. Reporting 

CDBG regulations at 24 CFR 570.507 

(for metropolitan city and urban 

counties) and 24 CFR 570.491 (for state 

grantees) require the submission of a 

Consolidated Annual Performance 

Evaluation Report (CAPER) describing 

the use of CDBG funds during the 

program year. 24 CFR 570.3 defines 

CDBG funds to include BEDI grants, and 

accordingly, grantees must report 

specifically on the use of BEDI grant 

funds and Section 108 loan guarantee 

proceeds in the CAPER. CAPER 

requirements for the collection and 

reporting of racial and ethnic data also 

apply to the use of BEDI and Section 

108 guaranteed loan proceeds. These 

data are to be reported in the CAPER 

using the Race and Ethnic Data 

Reporting form (HUD–27061). For each 

reporting period, as part of the required 

report to HUD, grant recipients must 

also include a completed Logic Model 

(form HUD–96010), which identifies 

output and outcome achievements 

consistent with the approved evaluation 

plan and responses to the management 

questions. 

For FY2007, HUD is considering a 

new concept for the Logic Model. The 

new concept is a Return on Investment 

(ROI) statement. HUD will be publishing 

a separate notice on the ROI concept. 

VII. Agency Contact. 

For technical assistance in completing 

your registration with Grants.gov or in 

using the electronic application, please 

contact the Grants.gov Support Desk by 

calling 800–518–GRANTS or by sending 

an e-mail to Support@Grants.gov. For 

assistance with program related 

questions, please contact David 

Kaminsky, Office of Economic 

Development; U.S. Department of 

Housing and Urban Development; 451 

Seventh Street, SW., Room 7140; 

Washington, DC 20410; telephone (202) 

402–4612 (this is not a toll-free 

number). Hearing or speech challenged 

persons may call the Federal 

Information Relay Service at 800–877–

8339 (this is a toll-free number). Before 

the application submission date, HUD 

staff will be available to provide general 

guidance and assistance about this BEDI 

NOFA. However, HUD staff is not 

permitted to assist in preparing a BEDI 

application. Following selection of 

applicants, but before awards are made, 

HUD staff are available to assist in 

clarifying or confirming information 

that is a prerequisite to the offer of an 

award by HUD. In addition, the Section 

108 Loan Guarantee program is not a 

competitive program and therefore is 

not subject to those provisions of the 

HUD Reform Act pertaining to 

competitions that do not permit HUD 

staff to assist in the preparation of 

applications. HUD staff are available to 

provide advice and assistance to 

develop Section 108 loan applications. 


rfrederick on PROD1PC67 with NOTICES2
54338 Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 

VIII. Other Information 

A. Environmental Impact 

A Finding of No Significant Impact 

with respect to the environment has 

been made in accordance with the 

Department’s regulations at 24 CFR part 

50, which implements section 102(2)(C) 

of the National Environmental Policy 

Act of 1969 (42 U.S.C. 4332). The 

Finding of No Significant Impact is 

available for public inspection between 

7:30 a.m. and 5:30 p.m. weekdays at the 

Office of the Rules Docket Clerk, Room 

10276, Department of Housing and 

Urban Development, 451 Seventh Street, 

SW., Washington, DC. 

B. Paperwork Reduction Act 

The information collection 

requirements contained in this 

document have been approved by the 

Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3501–3520) and 

assigned OMB control number 2506–

0153. In accordance with the Paperwork 

Reduction Act, HUD may not conduct or 

sponsor, and a person is not required to, 

a collection of information unless the 

collection displays a current OMB 

control number. Public reporting burden 

for the collection of information is 

estimated to average 2000 hours per 

annum per respondent for the 

application and grant administration. 

This includes the time for collecting, 

reviewing and reporting the data for the 

application and for the annual report. 

The information will be used for grantee 

selection and monitoring and the 

administration of funds. Response to 

this request for information is required 

in order to receive the benefits to be 

derived. 

Dated: September 14, 2007. 

Nelson R. Brego ́n, 

General Deputy Assistant, Secretary for 

Community Planning and Development. 

BILLING CODE 4210–67–P 


rfrederick on PROD1PC67 with NOTICES2
Federal Register / Vol. 72, No. 184 / Monday, September 24, 2007 / Notices 54339 

[FR Doc. 07–4702 Filed 9–21–07; 8:45 am] 

BILLING CODE 4210–67–C 


rfrederick on PROD1PC67 with NOTICES2EN24SE07.000</GPH>